The pharmaceutical industry is going through International development consultancy a huge offer of change. Corporations including Pfizer and Lilly are dealing with considerable product patent expirations. Moreover, firm pipelines are inadequate to exchange the revenues dropped to patent expirations. Finally, EU-based and US-based companies and US are shifting their corporations in direction of higher-growth marketplaces in China, India, along with other Emerging Marketplaces, producing interior organizational turmoil inside their household marketplaces.

As quite a few firms notice, it truly is decreasingly possible to easily “research” your way out of these issues. A part of the solution to these difficulties is acquiring and executing what we broadly refer to like a Organization Improvement and Licensing tactic (BD&L). This method would include any and all options for seeking and financing external partnerships, licenses, mergers, and/or acquisitions.

Of course all multinational pharmaceutical and biotechnology providers have an BD&L group, usually led by a member from the senior administration team. Larger corporations will have a team of a dozen or more executives, directors, and managers responsible for sourcing, analyzing, and recommending enterprise enhancement opportunities. Even smaller firms will have one or two individuals formally charged with the BD&L process.

So why should pharmaceutical firms, even large ones with large BD&L teams, use consulting companies to assist them? We believe there are 3 factors why this is the case:

Growth of an Overarching Framework - Several pharmaceutical and biotechnology corporations should be applauded for having a strategic and focused BD&L framework. Many businesses know exactly what they are looking for, i.e., asset type, stage of advancement, geography, offer structure, and so forth. A framework, even a simple one, makes it easier for the search team to identify and quickly eliminate opportunities that do not fit. This then enables the team to focus more time on those opportunities which might be a good fit. This results in better due diligence and faster offer making.

Unfortunately, there are lots of firms which do not take a framework-driven approach. Many searches are haphazard, where businesses look for anything with a certain revenue potential, or anything that can be sold by their existing sales and marketing infrastructure. In our experience, any approach which aims to easily provide the sales organization with products to sell is unsustainable in the long run.

Savvy BD&L executives can leverage consultancies to help them develop this overarching framework, identifying the key variables which are important to the company, its management, and its shareholders. Pharmaceutical management consultants can bring an objective perspective to an exercise which, if done properly, results in a roadmap that the BD&L team can then use to plan and execute a BD&L tactical plan.

Broaden Skill Set - We have noticed that numerous smaller BD&L teams have strengths and skills in some areas, but not others. For example, some corporations have BD&L teams led by scientists or clinicians or attorneys who lack the experience to quantitatively and financially assess opportunities. Using a consultancy can provide unbiased, rigorous quantitative analysis and financial modeling.

Extend Geographic Breadth and Depth - The traditional model for US and EU corporations was to license drugs from Japanese providers, because quite a few innovative Japanese companies lacked the global presence to develop and market their innovations outside their household country.